The Advantages of Commercial Advertising

by Colleen Reinhart, Demand Media

TV remains one of the best ways to attract customers.

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With online videos going viral and seemingly everyone clambering onto the Twitter bandwagon, small business owners are left wondering whether any advantages remain for traditional, commercial advertising on television and radio. TV and radio spots still come with benefits, but whether these promotional strategies are right for you requires analysis. When building your advertising plan, an approach based on your business model is what will deliver results.

Targeted Audience

Because television and radio stations keep detailed information about audience demographics, it's possible to broadcast your commercials to the exact consumer group you're looking to capture. Salespeople will work with you to tell you which shows and time slots reach which demographics, then you can negotiate an advertising package that airs your commercials only when your potential customers are tuning in. Work with cable companies and you can decide which channels air your advertising too. That's useful if you have a product that appeals to people with certain interests. For example, if you're selling a product for cooking, it makes sense to advertise on food and cooking channels.

A Chance to Sell Directly

"Call now" infomercials still work surprisingly well if your small business is selling a product that needs a demonstration for consumers to recognize its benefits. Known as direct response advertising, these 30-, 60- and 120-second advertising spots are usually sold by cable networks for a lower cost than for traditional commercials. If your product is already selling well, a direct TV production company could pick up the cost of producing your commercial in exchange for a portion of your revenues. Because these commercials include toll-free phone numbers for customers to call, it's easy to measure the return on your advertising investment.

Costs Vary

A television ad doesn't have to cost you millions of dollars. According to a 2006 "Entrepreneur" magazine report, airing a TV ad generally cost between $90 to $2,500 per commercial, meaning you could adjust your strategy based on the funds you have to work with. If you advertise with a local station during a popular talk show, expect to pay $90 to $300 per 30-second spot. For slots during news broadcasts, expect to pay anywhere between $200 to $1,500 locally. To get an idea of national advertising rates, double your numbers. Prime time slots are always pricey, no matter what advertising scale you choose. Radio advertising costs tend to be lower and stations will often produce your ad for you for free. A 2009 "Entrepreneur" article estimated that radio had a cost per thousand impressions of $4, compared to $10 for locally broadcast TV ads.

Brings in Customers

While online videos often attract attention, locally broadcast TV commercials still do a better job of bringing in paying customers, according to a 2010 Forbes article. Don Lutrario, owner of an awning company, estimated that 25 to 30 percent of his customers walked in the door because of his goofy television ads. Jorge Castro, a restaurant owner who placed a video ad online, found that his commercial earned him fan phone calls, but few actual customers.

About the Author

A professional writer since 2006, Colleen Reinhart has held positions in technical writing and marketing. She also writes lifestyle, health and business articles. She holds a Bachelor of Arts and Business degree from the University of Waterloo, and a Master's degree in speech-language pathology from the University of Toronto.

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